GST Penalty Paid Beyond 15‑Day Limit: Andhra Pradesh HC Directs Release of Detained Goods & Vehicle [Read Order]

In a recent ruling, the Andhra Pradesh High Court ordered the release of goods and the vehicle detained under GST provisions even though the penalty was paid beyond the 15‑day limit prescribed under Section 129 of the Goods and Services Tax (GST) Act.

Sai Krishna Contract Works, the petitioner, approached the High Court after tax officials seized a truck carrying iron and metal scrap. The truck was stopped on 7 September 2025 and on 19 September 2025, the officials imposed a penalty of Rs. 56,193 under CGST and another Rs. 56,193 under SGST.

The company paid the full penalty on 15 November 2025, which was 57 days after the order was issued.

The petitioner’s counsel argued that despite payment of the entire penalty amount, the authorities failed to release the goods and the vehicle, causing hardship and loss. The respondents maintained that the payment was made beyond the 15‑day period allowed under Section 129(6) of the GST Act.

The Division Bench comprising Justice R.Raghunandan Rao and Justice T.C.D. Sekhar observed that although the payment was delayed, the authorities had not taken any further steps for confiscation of the goods after the expiry of the 15‑day period.

The court explained that once the penalty had been paid and no confiscation proceedings were initiated within the stipulated time, the continued detention of the goods and vehicle was unjustified.

The High Court held that the detention was illegal once the penalty had been paid and no confiscation proceedings were initiated. The writ petition was allowed and the authorities were directed to release the goods and the vehicle. There was no order as to costs and pending applications were closed.

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